In a recession, typically
A)unemployment rises.
B)the employment rate decreases.
C)the employment rate rises.
D)the labour force participation rate rises.
E)Both A and B are correct.

Question

Quizplus · Accepted Answer

In a recession, there is a decrease in the overall economic activity, which leads to a decrease in demand for goods and services. This leads to a decrease in production and subsequently, companies may lay off employees to cut costs. This results in unemployment and a decrease in the employment rate. Therefore, both options A and B are correct.

In a Recession, Typically